>> welcome to "the journal." our headlines, a powerful bomb explosion has hit the norwegian capital of oslo. many people have been killed, others have been wounded. a gunman attacked a youth camp of the governing party. police say the two attacks are

linked. norway has been hit by a double bombing and shooting. in the capital of oslo, a bomb has exploded. 8 gunmen disguised as a policeman killed four people at a youth meeting of the ruling labor party. several government buildings have been severely damaged in central oslo. the prime minister is reported to be safe. police are warning people to stay away from the center of the capital. >> the blast tore through the government quarter at 3:20. the force of the explosion wrecked several ministries and the prime minister's office. he was not in the building. windows were shattered, fires broke out, and debris littered the streets at the site. people might be trapped in some

of the damaged buildings. eyewitnesses have been giving their accounts of the chaos. many say the explosion felt like an earthquake. >> we were standing there talking and then suddenly it seemed like the whole room had been picked up and the windows were all smashed in. i ran out to take a look and i saw lots of smoke coming from the ministry of justice. i thought it might have been a car bomb but we don't know anything. >> emergency services rushed to the scene to treat the wounded. many were injured by shards of glass. police evacuated the immediate area and urged people to leave. they later advised residents to stay indoors. police confirmed that a bomb caused the blast and the wreckage of a car seems

consistent with a car bombing. no one has claimed responsibility. police are on high alert. >> we are joined by our correspondent in oslo. what is the latest? >> the latest is that there has been one arrest made where the shooting took place. there are unconfirmed reports. there are a lot of rumors for around saying that this is a tall blond person. the downtown area is blocked off by police. people are trying to pick up the pieces and rescue the people. people are trapped inside were the most harm to. >> can you tell us about this

second attack that occurred? >> yes, that was approximately 45 minutes or half an hour after the initial blasts in downtown. we got reports through twitter. apparently a person and that police in the form was going around with some sort of automatic weapon and shooting randomly. those are confirmed shots. we don't know if there are any deaths there. >> any idea who was behind the attack? >> for now, we don't know. there are rumors of reports that say that the perpetrator was

tall and blond. it is speculated that it is right wing extremists. >> thank you very much. business now with steve and more on the events in norway. >> everything is in flux but the are are reports that the oil ministry is on fire. this underlines how central the building is that how integral the oil industry is to the affluence of this scandinavian country could export revenues make up more than 40% of norway's total exports and represent more than 20% of the country's gdp. the past 12 has prompted it to stay outside of the european union and despite being one of the biggest oil producers, there

are independent of opec. >> this is the oil drilling operations off of the coast that have brought the country the wealth they have known for -- become known for. they extract more than 100 million barrels a day. they are the number 7 in oil exports and number 2 in natural gas. it was not always so. norway was a relatively poor country. they started exporting oil and gas reserves at the end of the 1960's. one of the richest countries in the world, they have seen the drilling stagnate over the past few years. major oil companies have been pushing to explore new drilling options. the norwegian economy has been looking to bolster growth in other sectors like telecommunications. >> more on events in norway as they unfold but now to look at other headlines. >> the german chancellor has

described herself as a passionate european and she defended her handling of the debt crisis. she was speaking a day after the leaders agreed on a second bailout package for greece after hours of negotiations at an emergency summit. she pledged that germany was stand by greece and urged german companies to invest in the company to help -- in the country to help recover. >> angela merkel was keen to paint the outcome of the summit as a personal success. this countered criticism that she was slow and unwilling to react to the debt crisis. >> i had a clear sense of what you're should do so that people can continue to live and prosperity. >> insist that the growth must be geared towards the more robust economies. she defended fresh emergency loans for greece, in the rescue

of the euro a historical task. >> everything we do will come back in multiple ways. this is good for us and it is part of the economic success. >> for now, the taxpayer will have to shoulder a 109 billion euro burden. private investors including banks and pension funds will be involved in the bailout contributing nearly 50 billion euros. >> angela merkel stressed she would not let europe become a union in which wealth was transferred from rich to poor states. that does not mean that she lacks passion for europe. >> if i had as much passion for everything as i have for europe, my days with last 48 hours. >> she began to some of right at the weekend. >> european leaders have agreed

to strengthen the financial rescue funds to help indebted nations. they also agreed to a second bailout package for greece at an emergency meeting in brussels. the new head of the imf has described these as came changing decisions by the 17 leaders. the compromise reached at the summit in brussels has been welcomed by the greek people. >> a new plan for greece and a life-saving deal that saved greece and the euro. that is how the newspapers welcomed the news. people on the streets appear to share that optimism. >> this is a good decision. greece is in a hard spot. this is not anyone else's fault. the greeks are responsible for that. >> i think the result of the summit are good, the repayment has been extended and the interest is lower. >> some tend to see the glass

half-empty, not half full. the financial crisis has affected many lives. >> i think the crisis will last a lot longer. we have been having many problems here. >> after all i've seen and heard, i have no hope left. reporters say whatever they want. we cannot trust anyone. >> however greeks feel, the sum that has given athens money and time to sort it out. >> a a bit of a watershed. in contrast to previous summits, the thursday meeting showed the clear determination of the leaders to implement an effective long-term solution to and the spiral of debt problems and destabilizing downgrades by rating agencies. the european financial stability facility will gain new powers allowing it to intervene in the

primary and secondary bond markets and quickly, that any future crises. >> a collective sigh of relief from the financial markets. the decisive action was enough to calm nerves on european trading floors. the message was that the eu was fighting to protect the euro. >> they agreed on a whole raft of measures and that makes it obvious to outside observers that everyone is prepared to pull together to protect the currency. >> the brussels summit decided to expand the powers of the european financial stability facility. this was set up to stabilize economies like greece's with emergency funding. parliament and the member states have to endorse the plan. he would allow the facility to buy sovereign bonds but only with consent of the ecb.

it could give states precautionary credit lines as long as they take action to reform their economies. the new powers are aimed at preventing the debt crisis from spreading to larger economies and to help larger candidates before it is too late. >> german stocks advanced for the fourth day running. the dax went too solid gains for the week as a whole. the eurozone leaders agreed on the new debt deal. >> there's lots of praise for the bailout plan for greece. this is the optimum that could be reached under the stock of stances -- under the circumstances. the marshall plan is very well accepted here. people say it is necessary to vote greece along economically. financial shares profited and

the best performance this week in the dax. the dax gained about one and a half percent. there is uncertainty that remains. at the end of the week, silver is remaining at a high-level. >> we will look at the market numbers. germany's benchmark finish the day higher. the euro stocks 50 finishing higher. -- the euro stoxx 50 finishing higher. on currency markets, the euro traded lower against the dollar at a value of one u.s. $40 3 cents. -- $1.43. >> the on voice of north and south korea met on the

sidelines. -- the invoice -- the envoys of north and south korea meet to discuss the north korean nuclear program. they are looking to renegotiate in exchange for humanitarian assistance. muammar gaddafi has redacted any negotiations with rebel representatives. in an audience -- in an audio address, he said that there would be no talks between him and the rebels until judgment day. the rebels have also rejected negotiations. the african union has been pushing for a negotiated settlement to the standoff. a ban on women wearing a full body fail or burqa comes into force in belgium making it the second european country to enforce this. the legislators voted in favor

of the band in april. the council of the human rights commission has condemned the move and they said it was a sad capitulation to xenophobia. >> this could be one of the last times she would go out in public dressed the way she wants. a belgian man on full body burke is go into effect saturday. this poses some practical problems. >> as a mother of four children, i sometimes have to go to the doctor or museum, the park, or ride a bicycle. i am shocked that this will leave me at home. >> if she wears a perk up on the metro with the tram, she will face a fine of more than 130 euros and up to seven days in

jail. -- if she wears a burqa on the metro or on the tram. >> when i go to the bank, of course i find it completely normal to show my face. it does not bother me. i was born and raised here. i am as belgian as anyone. this is my personal decision. "she does not care if anyone takes offense. that is discrimination. this should be solved through mutual understanding. if she would like to go outside, wearing the veil will not be an option anymore. >> today's route on the tour de france was a short exploration.

another uphill race after the breeding ride. once again, it passed over the -- will be back with more on the explosions in norway after the break.

>> is the motive is still unclear but one thing is certain, the massive blast that rocked downtown oslo was caused by a bomb. this was probably planted in a car. at least two people were killed, 15 others wounded. several government buildings were damaged included the office of the prime minister who was not in the building at the time of the blast. he said that the situation is very serious. police have perished people in the downtown area to stay at home or in their hotels. -- police have urged people in the downtown area to stay home. >> i am joined by my colleague. you know norway very well.

you have worked there as a journalist. tell us the area where the explosion occurred. >> this is only a couple of minutes from the main shopping streets. this is a normally very crowded area. many people have been lucky that they have not been in that place and they did not do their shopping right there. a lot of people on a friday, they are out there in norway. >> how well prepared is norway? >> of course, i can speculate. this is a secret. the norwegians are not that prepared. the reason is that they never had an attack like this. they never had a very serious warning. i am sure that the police was prepared but i think the preparations in other countries in europe, especially in france or germany is better than

norway. >> at this point we don't know who was behind the attack, but what could possibly make the norwegian government a target of such things? >> well, one of the reasons could be that norway is in afghanistan with his forces. there are a lot of norwegian soldiers who are in afghanistan doing their work. norway was always on standby when the u.n. was called in for international troops. norway did a lot of work with the soldiers abroad. another possible thing is that it was a right-wing attack. the speculation about the right wing attack in norway. so far, we don't know anything. >> thank you for joining us. in other news, the last major suspect wanted for war crimes in yugoslavia has been extradited.

here right in that violence two days after he was arrested in serbia. he is the last fugitive of more than 160 suspects indicted by the war crimes tribunal. he led separatist forces during the war in the 1990's. he's charged with 14 counts of war crimes and crimes against humanity including persecution and torture. a european -- is on her way to kenya to assess the impact of the famine in the horn of africa. a giant camp across the border is struggling to cope with the influx of refugees. >> this camp was designed for 90,000 refugees. there are now as many as four times living here. people ride with days and weeks

on the road and they're hungry. even here, food is in short supply. rations are only distributed twice a month. effective -- >> this has been for 16 days. >> rations are only distributed to the registered residents of the camp. more than 1000 refugees arrive here every day. they're given emergency rations and have to make those last. >> we arrived 25 days ago. we received a little bit of food as emergency solution. since that day, we not receive any more food. >> doesn't have a right to discover that the camps are full. new camps have been built but this is not yet open. >> some news from the u.s. debt crisis. >> europeans got the job done

but the clock is ticking in the united states. president obama is hoping to reach an agreement on raising the country's debt ceiling but negotiations between his democrats and the opposition republicans remain deadlocked. obama set this friday as the deadline for a deal said there would be enough time to get it through the legislative process. the world's biggest economy will launder be able to pay its bills. politicians are working overtime to reach a deal but a patchwork of proposals is making it difficult to resolve the budget crisis. for more on that story and an update on the friday trading session, let's join our correspondent who is standing by at the nyse. will there be a last-minute deal? what is if you from wall street? >> it is not expected that a thing will happen on friday. john boehner said no deal yet

and it will test how take much more talks -- and it will take much more talks. it is hoped that some deal will be reached but it will be tough to get that done and over with and implemented by the deadline. >> as the earnings season continues, we have seen numbers from mcdonald's. did the numbers give investors an appetite to buy? >> that stock is one of the supporters for blue-chip saw on wall street. the heat we have been experiencing helps the business of mcdonald's as more people are buying cold drinks like milkshakes, for instance, or smoothies. the company did much better than expected and is one of the bigger winners. >> in general, it seems like the market is struggling to move higher.

what is holding it back? >> there are a couple of factors. even after the deal, the euro is trading lower, the dollar is stronger. there is also uncertainty about the debt issue in the u.s. and we also had a couple of companies it is disappointed with their earnings. caterpillar did worse than expected. they're losing a good 5%. >> thank you very much. unions in italy have blocked offices and trains and brought them to a standstill. the strike target is government plans to privatize the public sector. they're demanding more job security and a rise in the minimum wage. there was a $38 billion package.

>> thank you. at the seven people have been killed and many more wounded by a powerful explosion in the norwegian capital. the blast hit central oslo include in the office of the prime minister. he was not in his office at the time. the police say shots were fired at a use meeting close to oslo. the shooter was reportedly dressed in a police uniform. police say a man has been arrested and they suspect the two incidents are related but they have not said how. we will have more on this developing story in a letter bulletin. stay with us.